Save Article

If China successfully manages to move from an investment-focused economy to a consumption-based one, such a shift will have a major impact on the rest of the world. That’s one of the key themes Stephen Roach, a former chairman of Morgan Stanley Asia, looks at in his book “‘Unbalanced: The Codependency of America and China.”

In his new book, Mr. Roach argues that both the U.S. and China need to find new ways to manage their economies: America needs to start saving more, while China needs to start serving its own consumers — not least by providing a better social safety net.